US - Digital Cable Growth Continues to Exceed Satellite

ALEXANDRIA, VA — Digital cable penetration has surpassed that of satellite television service for the last three years, according to new research by CTAM: Cable & Telecommunications Association for Marketing.

In 2008, digital cable penetration was 34 percent and satellite 27 percent; increasing from 29 percent in 2007 and from 26 percent in 2006. Satellite penetration was 25 percent in 2007 and 24 percent in 2006. Market penetration of video services from the telephone company was a mere two percent in 2008. Overall, cable is maintaining 65 percent of the market.

“Clearly, cable remains very strong, even in an environment of fierce competition,” said CTAM President and CEO Char Beales.

The Pulse research, Tracking Entertainment and Technology: The New Communications Landscape, examines consumer interest in home entertainment and telecommunications, products and services.

Additional findings show that the demand for cable high definition (HD) programming is showing significant growth. In 2006, 12 percent of cable customers subscribed to HD service; that number grew to 29 percent in 2008. The penetration of HD service in digital cable households (47 percent) is nearly twice that of satellite households (25 percent).

Overall, 35 percent of those surveyed own an HD TV set, compared to 23 percent in 2007. Fifty-five percent of digital cable homes have an HD set, compared to 37 percent of satellite homes.

The survey also measured consumer adoption of Blu-ray technology, revealing that 14 percent of digital cable and six percent of satellite homes own a Blu-ray DVD player.

This research is based on a telephone survey conducted by CENTRIS as part of an Omnibus survey conducted from May 23 through June 5, 2008. The sample includes 1,010 randomly selected adult consumers age 18+. This study has a +/-3.5 percentage point margin of error.